US copper cuts losses by close, stock builds weigh

NEW YORK, Jan 29 (Reuters) - U.S. copper futures cut their losses by the close on Thursday as support held near the $1.40 level after a surge in inventories and bearish economic data ignited an early sell-off.

For detailed report on global copper markets, click on [MET/L]

* Copper for March delivery HGH9 fell 3.85 cents to settle at $1.4575 a lb on the New York Mercantile Exchange's COMEX division.

* Session ranged from $1.4210 to $1.5020.

* COMEX estimated volume at 11,772 lots by 12 p.m. EST (1700 GMT). Final volume on Wednesday hit 19,830 lots.

* Open interest rose 3,785 lots to 87,898 contracts open as of Jan. 28.

* Sideways price action between $1.35 and $1.60 over the past few months indicative of a market that has bottomed and ready for a breakout - Michael K. Smith, president of T & K Futures and Options Inc in Port St. Lucie, Florida.

* Optimism ahead of U.S. economic stimulus plan keeps COMEX copper buoyed above $1.40 - analysts.

* The U.S. Senate will consider next week a nearly $900 billion package of tax cuts and spending programs that are aimed at pulling the U.S. economy out of its downward spiral. [ID:nN29282009]